Oman Tribune

Fitch Ratings has assigned Mazoon Electricity Company's Sukuk an expected rating of 'BBB'. The expected rating is in line with Mazoon Electricity’s Issuer Default Rating (IDR) of 'BBB', which has a negative outlook. Mazoon Assets Company’s is the issuer of the certificates and trustee and is a closed joint stock company in accordance with the laws of the Sultanate. The trustee has been incorporated solely for the purpose of participating in the transactions contemplated by the transaction documents. Earlier, Moody’s Investors Service assigned a Baa2 rating to Mazoon’s Sukuk certificates. The outlook on all ratings is negative.

The new sample of the Muscat Securities Market (MSM) Sharia Compliant Index, which includes 32 MSM listed companies, will start operations on Sunday. MSM will revise the sample each three months to include companies that are compliant with regulations and exclude companies that are not compliant. Analysts said that the Islamic indicators will attract new category of investors as they meet the needs of investors who prefer to have reliable reference that help them in identifying the investments that meet the requirements of the Islamic Sharia. This in turn will contribute to the development and growth of the Islamic finance market.

An independent legal entity should oversee the way in which Islamic financial institutions certify they are following Sharia principles, Kuwait’s central bank governor Mohammad Al Hashel has said. Currently, boards of Sharia scholars at financial institutions rule on whether activities and products follow religious principles and they are also involved in audits. At the same time, the scholars are on the payroll of the Islamic banks which they vet, an arrangement contrary to good governance. The growing role of Islamic finance in some national economies is now prompting government watchdogs to pay more attention to the sector. Clear and specific professional frameworks for the duties and responsibilities of Sharia authorities and their audit function are needed.

Central Bank of Oman (CBO) has given its final approval to the Islamic banking arm of Bank Muscat - Meethaq - to start full-fledged operations. The starting date of the bank's operations is January 21st. Meethaq will begin functioning as a bank with 150-million-rial capital at its disposal. The money is intended to be used to boost growth opportunities. A full suite of regulated Islamic banking products will be offered.

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